The balloon crashed ahead of the Mid-Atlantic Balloon Festival, which was cancelled following the crash.

It was among 13 balloons that took off from Meadow Event Park, home to the State Fair of Virginia, and was approaching a landing site nearby. Two of the balloons landed safely before the third hit the live power line.

The pilot attempted to retain control of the balloon and snuff the fire and two passengers either jumped or fell from the gondola, state police spokeswoman Corinne Geller said.

"Then witnesses recall hearing an explosion and the fire continued to spread," Geller said. The gondola and the balloon then separated.